Kraken, whose founder donated $1 million in crypto to Donald Trump, intends to launch a blockchain network next year.
Krakenβs upcoming launch, dubbed Ink, has a blockchain design similar to Coinbaseβs Ethereum (ETH) layer-2 network, Base. California-based Kraken plans to become the second U.S. crypto exchange to launch its own decentralized chain with smart contract support by early 2025.
Remarks from the developers behind Ink disclosed that the chain will be another Ethereum scaling solution, commonly called L2s. Ink founder Andrew Koller mentioned that Krakenβs blockchain will enable retail and institutional market players to engage in trustless financial activities on-chain.
Features of Ink
Like Base on Ethereum, Koller and his team designed Ink to host decentralized applications such as DeFi lender Aave or Aerodrome, the largest DEX on Coinbaseβs L2. Ink taps into Optimismβs developer stack, the same toolkit powering Base.
Success of Layer-2 Networks
Coinbaseβs Base has become DeFiβs fifth-largest chain, accumulating the most user deposits, or total value locked (TVL) of any Ethereum layer-2 network. According to DeFiLlama, users have invested over $2.4 billion on Base since its launch in August 2023. Only Ethereum, Tron, Solana, and Binance Smart Chain held larger TVLs.
The success achieved by Base and Binance Smart Chain may offer a glimpse of how high a crypto exchange-backed blockchain could ascend in a short time. Kraken, alongside Binance and Coinbase, is one of the largest digital asset trading platforms.
Krakenβs Strategic Move
Inkβs reveal could also represent Krakenβs optimistic outlook on the U.S. crypto landscape post-elections. In June, Kraken founder Jesse Powell donated $1 million, mostly in ETH, to Republican candidate and former President Donald Trump.
For too long, the crypto industry has been under attack by Elizabeth Warren, Gary Gensler, and others. Despite overwhelming bipartisan Congressional efforts to put clear rules in place, the Biden White House hasβ¦
In related news, Powellβs crypto exchange was involved in litigation over allegations levied by the Securities and Exchange Commission. A judge ruled to advance the SECβs lawsuit, while the company denied operating as an unregistered securities exchange and requested a jury trial.
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